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Sep 5, 2012

Global mobile Internet data traffic to grow 18-fold by 2016: Cisco

Worldwide mobile data traffic will increase 18-fold over the next five years, reaching 10.8 exabytes per month -- or an annual run rate of 130 exabytes -- by 2016, according to the Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast for2011 to 2016.

The expected sharp increase in mobile traffic is due, in part, to a projected surge in the number of mobile Internet-connected devices, which will exceed the number of people on earth (2016 world population estimate of 7.3 billion; source: United Nations). During 2011-2016 Cisco anticipates that global mobile data traffic will outgrow global fixed data traffic by three times.

This mobile data traffic increase represents a compound annual growth rate (CAGR) of 78 percent spanning the forecast period. The incremental amount of traffic being added to the mobile Internet between 2015 and 2016 alone is approximately three times the estimated size of the entire mobile Internet in 2012. The following trends are driving these significant increases:

More Mobile Connections: There will be more than 10 billion mobile Internet-connected devices in 2016, including machine-to-machine (M2M) modules -- exceeding the world’s projected population at that time of 7.3 billion. (One M2M application is the use of wireless networks to update digital billboards. This allows advertisers to display different messages based on time of day or day-of-week and allows quick global changes for messages, such as pricing changes for gasoline).

Enhanced Computing of Devices: Mobile devices are becoming more powerful and thus able to consume and generate more data traffic. Tablets are a prime example of this trend generating traffic levels that will grow 62-fold from 2011 to 2016 -- the highest growth rate of any device category tracked in the forecast. The amount of mobile data traffic generated by tablets in 2016 (1 exabyte per month) will be four times the total amount of monthly global mobile data traffic in 2010 (237 petabytes per month).

More Mobile Video: Mobile users want the best experiences they can have and that generally means mobile video, which will comprise 71 percent of all mobile data traffic by 2016.

The Cisco study also projects that 71 percent of all smartphones and tablets (1.6 billion) could be capable of connecting to an Internet Protocol version 6 (IPv6) mobile network by 2016. From a broader perspective, 39 percent of all global mobile devices (more than 4 billion), could be IPv6-capable by 2016.

Impact of Mobile Devices/Connections

The increasing number of wireless devices and nodes accessing mobile networks worldwide is the primary contributor to traffic growth. By 2016, there will be more than 8 billion handheld or personal mobile-ready devices and nearly 2 billion machine-to-machine connections, such as GPS systems in cars, asset tracking systems in shipping and manufacturing sectors and medical applications for making patient records more readily available. Suraj Shetty, Vice President - Product and Solutions Marketing, Cisco said, “By 2016, 60 percent of mobile users -- 3 billion people worldwide -- will belong to the ‘Gigabyte Club,’ each generating more than one gigabyte of mobile data traffic per month. By contrast, in 2011, only one-half percent of mobile users qualified. This impressive growth in mobile traffic will be driven by more powerful devices, notably smartphones and tablets, using faster networks, such as 4G and Wi-Fi, to access more applications, particularly data-intensive video.”

Smartphones, laptops and other portable devices will drive about 90 percent of global mobile data traffic by 2016.